A Shift in the Financial System
Global “Crypto-shock”
The biggest crisis in history is approaching
and we know what to do.
HISTORY
History already knows precedents of a financial system shift. It happened 600 years ago in Europe. In January 1345, as a result of King Edward of England’s refusal to pay his debt, the largest trading houses in Europe, Bardi and Peruzzi, went bankrupt. The chain of defaults spread throughout Europe – even the Papal Curia declared default. The event led to the collapse of the gold florin. The next 150 years are known to us as the “Late Middle Ages” or the “Dark Ages”.
Today we have a similar situation. The bankrupt Edward of England is the Federal Reserve, and the trading houses are banks and states. The Fed planned to fight creditors by rebuilding the whole world under a new scheme, using the PSD2 directive and technology companies. And although the project is clearly failing, PSD2 will still happen, which is why bankers are looking to the future with growing anxiety.
The difference from the situation 600 years ago is that we have cryptocurrencies that DO NOT have a single centre of issue.
EXPONENTIAL
As everyone already knows, fiat is flowing into crypto. The chart of cryptocurrency capitalisation has the shape of an almost exponential curve. Judging by the unexpectedly quick reaction of states, they realised the threat. Since governments are joining the race for a piece of the printing press on an equal footing with everyone else, it is clear that central banks will have to forget about the concept of the “key rate”. Money for states, and it does NOT matter whether the issue is pegged to the dollar or not, is NO longer free. Governments are in a panic. Bankers are in a panic twice over. There is a hype on the market for miners.
SAVING CAPITAL
By imposing free issuance on an already clear refusal to try to ban crypto, we have a situation where ordinary people, banks, states and even the Fed itself are in an equally difficult position. But, if an ordinary person can simply buy BitCoin, then a quick exit into crypto for too much capital is simply impossible – this amount of crypto cannot be bought at once without a collapse in quotes. Thus, it is no longer a question of increasing capital, but of saving it. Our clients are bankers and states.
Next, we proceed from the impossibility of assessing the behaviour of capital that has gone mad. And the capital is really insane, because now it is driven by wild profits and the fear of disappearing at the same time. In such conditions, it is necessary to consider all scenarios, including extreme ones. There is a small chance that fiat will flow into crypto faster than in a year and completely. But the average time frame for analysts’ forecasts is somewhere around 2019-2020.
SOLUTION
An exemplary team based on a super data centre is building a pump for an hourglass to force the pumping of capital into crypto. The components of the pump are all businesses implemented on the basis of the data centre. The clients are banks and states. Such pumps will allow our clients to have time to transfer as much money as possible into crypto before the singularity point of the financial world arrives. We need to scale as quickly as possible, otherwise, we may miss the peak.
FUTURE
Of course, we cannot say how such a singular crisis will end “in general”. And DO NOT listen to analysts who predict what will happen “after”. It is impossible to look beyond the singularity point – that is why it is a singularity. We can only prepare ourselves as much as possible for the coming upheavals. Alexei Zarin
Moscow, 2017
